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Market Volumes and Value

Cassava production in Zanzibar is a major enterprise for farmers. Farm concern International profiled five main cassava wholesale informal markets with statistics showing that there were 16 wholesale traders moving a total of 3,144.2 MT of cassava and cassava products valued at USD 979,685 although the annual market potential estimated at 8,328.6 MT. During the low supply season, the price of one kilogram of fresh cassava is USD 0.27 (Tsh 531.4) compared to average price of USD 0.06 during high supply season.  Most of the smallholder farmers sell their cassava direct to brokers whose best price for a kilogram of fresh cassava during low supply season is only 0.13 (Tsh 270). Reduction of inefficiencies along the cassava value chain through streamlining of sourcing logistics, quality management and bulking remains the best bet for improving farmers’ earnings from cassava. Processing of cassava also offers an opportunity for farmers to store dried cassava during the peak production seasons and offloading it during the low production seasons.

 

Commodity

Units

Volume traded (Kg)

Value (USD) of traded volume

Market deficit (Kg)

Market deficit valued (USD)

Fresh cassava

Kg

3,037,000

807,200

5,120,000

1,403,271

Cassava cuttings

Bunches

1,175

1,791

325

495

Cassava flour

Kg

27,875

15,371

43,525

26,753

Cassava chips

Kg

38,700

78,252

9,525

19,207

Cassava crisps

Kg

40,560

78,861

11,790

19,026

Source: Farm Concern International (FCI), Market Opportunity Assessment, 2016

Gross Margin Analysis Summary

During the peak season, productivity among smallholder farmers average at 5.25 MT/acre against a potential yield of 10 MT/acre. The total gross margin earnings from an acre of fresh cassava is USD 419.2 which is 5.5 times higher than the prevailing minimum wage of USD 76.21 per month in Zanzibar. Earnings from cassava cuttings are estimated at USD 545.33 per season per acre which is 23.1% more than earnings from fresh cassava. Value addition and selling cassava cutting would earn a farmer USD 774.5 from an acre while processing into cassava floor would further increase earning to USD 1278.

 

 

 

 

Category: Market Research
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